With the end of the pandemic in sight, more people will relocate than in over a decade
Redfin, a national real estate residential brokerage, is predicting that Tucson will be one of the hottest housing markets in 2021, along with San Antonio and Tampa, Fla. as housing becomes unaffordable in Phoenix, Austin and Miami, according to the December 15 report.
For years, Americans have been leaving expensive coastal cities for more affordable southern cities such as Austin, Phoenix and Miami, but those big cities have become unaffordable for both current residents and new potential migrants.
As a result, nearby smaller cities such as Tucson, San Antonio and Tampa will experience an increase in population and demand for homes, which will heat up those housing markets the most in 2021, Redfin reported.
Tucson homes cost 21% less than Phoenix homes ($265,000 compared to $336,000); San Antonio homes cost 27% less than Austin homes (a median price of $263,000 compared to $362,000); and Tampa homes cost 24% less than Miami homes ($271,000 compared to $355,000), the report said.
Overall, the housing market is predicted to remain strong through 2021 as the economy recovers from the pandemic-driven recession. In early 2021, homebuyers will remain undeterred by the pandemic, eager to take advantage of sub-3% mortgage rates while they last. Later in the year, the worst of the pandemic will hopefully be behind us, and as businesses reopen and daily activities become safer, a new batch of homebuyers and sellers will enter the housing market, making for the strongest year of home sales since 2006.
Read more predictions from the Redfin 2021 housing market report at www.redfin.com/news/housing-market-predictions-2021/.